Will Tapestry's Purchase of Capri Leave It With 5 Struggling Brands?
(NYSE: TPR) is trying to build itself into a luxury goods giant filled with powerful, high-end brands. That's a great plan. The difficulty lies in making it happen. The company's next big move will be to complete its proposed acquisition of Capri Holdings (NYSE: CPRI).
But when you look at the financial results from the third quarter for each of these luxury fashion companies, well, there are worrying similarities to the merger of Sears and Kmart. Let me explain.
In its prime, Sears was a retail titan. It is not even the slightest overstatement to say that Sears helped to shape the United States. Its iconic catalog offered everything from clothing to houses (yes, you could buy an entire house from Sears). While perhaps not quite as influential, Kmart, too, was a retail juggernaut at its peak. The term "blue light special" may be a joke today, but it only exists in the U.S. lexicon because of Kmart. But by the time these two one-time icons merged, they were both struggling.
Source Fool.com
